Mobileye, a leading developer of autonomous driving technology based in Jerusalem, announced on December 8, 2025, that it will lay off about 200 employees, which is roughly five percent of its global workforce. This move comes as the company faces shrinking demand for its products and a sharp drop in revenue, with most cuts affecting workers in Israel where the firm has its main operations.
Company Overview and Recent History
Mobileye specializes in advanced driver assistance systems and self-driving tech. Founded in 1999 by Professor Amnon Shashua, the company grew quickly and caught the eye of major players in the auto industry.
In 2017, Intel bought Mobileye for over 15 billion dollars, making it one of the biggest deals in Israeli tech history. The firm went public on the Nasdaq in 2022 with a starting value of about 17 billion dollars. Since then, it has expanded its team by around 30 percent to more than 4,000 employees worldwide.
Today, Mobileye operates in several Israeli cities including Jerusalem, Haifa, Tel Aviv, Petah Tikva, and Ramat Gan. About 3,000 staff members work in these locations, focusing on innovations like vision-based sensors and mapping tools for safer roads.
The company partners with big car makers such as BMW, Volkswagen, and Ford to integrate its tech into vehicles. These partnerships have driven growth, but recent market shifts have created new challenges.
Reasons Behind the Layoffs
The layoffs stem from a need to streamline operations amid tough economic conditions. Mobileye has seen its revenue fall due to weak orders for its chips, as customers built up large inventories in 2024 after the global chip shortage during the pandemic.
This year, the company’s stock has dropped more than 40 percent, bringing its market value down to about 9.5 billion dollars. Shrinking demand in the autonomous driving sector has forced the firm to adjust its workforce to match current needs.
Earlier in 2025, Mobileye closed its lidar sensor unit and cut 100 jobs in September. That decision was part of a broader strategy to focus on core products like camera-based systems, which are cheaper and more efficient for many applications.
Industry experts point to increased competition from rivals like Tesla and Waymo, which are pushing forward with their own self-driving tech. Global auto sales have slowed, adding pressure on suppliers like Mobileye to cut costs.
Impact on Employees and Israel Tech Sector
Most of the 200 layoffs will hit employees in Israel, where the company has its largest presence. This affects various departments, from research to support roles, as Mobileye aims for greater efficiency.
The firm has promised support for those losing jobs, including help with finding new positions. At the same time, it plans to keep hiring in key areas like software development and AI to support long-term goals.
In Israel, the tech industry has faced ups and downs this year. Other companies have also trimmed staff amid global economic uncertainty.
Here are some key effects on the local economy:
- Job losses could raise unemployment in tech hubs like Jerusalem and Tel Aviv.
- It might push skilled workers to seek opportunities abroad or in other sectors.
- On a positive note, Mobileye’s continued recruitment shows faith in future growth.
Workers in the autonomous driving field may find new roles quickly, given the demand for their expertise. Still, these cuts highlight the risks in a fast-changing industry.
This is not the first wave of layoffs in tech this year. Similar moves by companies like Intel, which owns about 80 percent of Mobileye, reflect broader trends in cost-cutting.
Financial Performance and Market Reaction
Mobileye’s financials tell a story of highs and lows. After strong growth post-IPO, revenue dipped in 2025 due to inventory issues and softer demand.
The table below shows key financial highlights over recent years:
| Year | Revenue (in billions) | Stock Performance | Market Value (in billions) |
|---|---|---|---|
| 2022 | 1.9 | IPO at $21/share | 17 |
| 2023 | 2.1 | Up 15% | 20 |
| 2024 | 2.0 | Down 10% | 15 |
| 2025 | 1.8 (estimated) | Down 40% | 9.5 |
Investors reacted quickly to the layoff news, with shares falling further on December 8. Analysts say the cuts could help stabilize the company by reducing expenses.
Despite the slump, some see potential upside. Rising interest in electric and self-driving vehicles could boost demand for Mobileye’s tech in the coming years.
Intel’s recent sale of some Mobileye shares raised about 1 billion dollars, showing efforts to strengthen its own position while supporting the subsidiary.
Future Plans and Industry Outlook
Mobileye remains committed to its vision of safer, autonomous roads. The company continues to invest in critical tech areas, even as it trims other parts of the business.
Leaders like CEO Amnon Shashua emphasize innovation as key to recovery. Partnerships with car makers are expanding, and new products like advanced mapping systems are in the works.
Looking ahead, the autonomous driving market is expected to grow to over 400 billion dollars by 2030, according to industry reports. Mobileye aims to capture a big share by focusing on affordable, scalable solutions.
Challenges remain, including regulatory hurdles and competition. Yet, with a strong base in Israel and global reach, the company is positioned to rebound.
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